SEBI gives clean chit to Gautam Adani and Adani Group in Hindenburg Report case, rejecting allegations of manipulation, related party dealings, and regulatory failures.
Case in NewsSEBI gives clean chit to Adani Group and Gautam Adani in Hindenburg Report allegations of stock manipulation. |
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Case Overview
Case Name: Hindenburg Report Allegations vs. Adani Group & Gautam Adani
The controversy stemmed from the Hindenburg Report, which accused the Adani Group of manipulative stock practices. The Supreme Court of India, led by then CJI DY Chandrachud with Justices JB Pardiwala and Manoj Misra, had earlier upheld SEBI’s role and denied any SIT or CBI probe. The Securities and Exchange Board of India (SEBI) later gave a clean chit to Gautam Adani, Adani Enterprises, Adani Power, Adani Ports, and other entities.
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Key Aspects
The case primarily dealt with allegations of manipulative transactions, related party dealings, and possible regulatory failures. Petitioners also highlighted claims against SEBI Chairperson Madhabi Puri Buch. However, the investigations and judicial scrutiny found no basis in these charges.
- Allegations of stock price manipulations by Adani Group.
- Accusations of undisclosed related party transactions.
- Claims of offshore investments linked to SEBI Chairperson.
- Supreme Court rejected reliance on media and OCCRP reports.
- Lokpal dismissed corruption complaints as speculative and unsupported.
Legal Insights
The legal evaluation revolved around securities law, disclosure obligations, and unfair trade practices. SEBI applied the regulatory framework to assess whether the allegations had any statutory basis.
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – No violation, as transactions were not “related party transactions.”
- SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 – No evidence of manipulative or fraudulent trades.
- Securities Contracts (Regulation) Act, 1956 – No breach of fair market conduct was established.
- 2021 LODR amendment was substantive and not retrospective in application.
Court’s Verdict
The Supreme Court of India endorsed SEBI’s clean chit, refusing calls for a special probe. It ruled that reliance on unverified news reports and external organizations like OCCRP could not undermine SEBI’s statutory investigation. With this, SEBI dropped all proceedings against Gautam Adani and Adani Group companies, affirming the absence of regulatory violations.
Source – Supreme Court of India
Read also – Charges
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